Department of Education

Note 12: Reserves
12.1
Reserves
2011
$’000
2010
$’000
Physical asset revaluation reserve
Balance at the beginning of financial year 194,875 126,069
Revaluation increments
Land 3,156 71,364
Buildings 54,183 (15,105)
Heritage 1,983 12,547
Balance as at 30 June 254,197 194,875
12.2
Administrative
restructuring
(a) Nature and purpose of reserves
Physical asset revaluation reserve
The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current
assets, as described in accounting policy note 2.13(d).
As a result of a restructuring of post-Year 10 education associated with the Tasmania Tomorrow initiative, the
department assumed responsibility for the assets, reserves and liabilities of the Tasmanian Polytechnic and the
Tasmanian Academy effective 1 January 2011.
Additionally, effective 1 January 2011, the department agreed that control of the land and buildings of three
campuses previously held by the Tasmanian Polytechnic should transfer directly to the Tasmanian Skills Institute.
These assets had a net book value of $82.822m at 31 December 2010 in the Tasmanian Polytechnic.
The department also agreed to transfer to the Tasmanian Skills Institute control of one other building at South
Burnie at this time. This was recorded on the department’s books at $4.772m.
The land and building assets being transferred from the Tasmanian Polytechnic, excluding the three campuses
being transferred directly to the Tasmanian Skills Institute, were also re-valued and their effective life aligned with
the department’s accounting policies before recognition. The effect of this action caused the valuation amount of
these assets to increase by $89.118m over the Polytechnic’s carrying value.
The 2010 actual reflects the transfer of Elizabeth College to the Tasmanian Polytechnic, whilst the 2011 actual
reflects the transfer of Tasmanian Polytechnic and the Tasmanian Academy as discussed above.
(a) Book value of assets and liabilities received or transferred
2011
$’000
2010
$’000
Net assets assumed/(transferred) on restructure
Financial assets
Cash and deposits 1,415 (359)
Receivables 796 –
Non-financial assets
Plant and equipment 9,414 (90)
Land and buildings 260,773 –
Other 1,564 (14,761)
Total assets relinquished 273,962 (15,210)
Liabilities
Payables 2,040 –
Employee benefits 21,564 (1,702)
Other liabilities 2,351 (104)
Total liabilities 25,955 (1,806)
Net assets assumed/(transferred) on restructure 248,007 (13,404)
Net contribution by the government as owner during the period 248,007 (13,404)
Financial Statements – Notes 117